GMG Global

GMG just reported their results this evening. Did not disappoint.

PROPOSED ACQUISITION AND SUBSCRIPTION OF 35% OF THE SHARES IN THE CAPITAL OF SIAT SA

http://info.sgx.com/webcoranncatth.nsf/V...B00452DB4/$file/ProposedAcqn-SiatSA-210212.pdf?openelement [Announcement]

Looks like a mega $319 million dollar deal !

(Not Vested)

(28-12-2011, 10:15 AM)freedom Wrote: the share ssold @0.091 by GMG and the shares bought back @0.113 by GMG are the same share. No matter how you would like to look at it, it is stupid thing to do.

to the extreme, if you prefer the company continuing to buyback its own shares @0.113, soon, you will find your share is worth less and less.

well, i guess they bought back @0.113 to support the share price. I think the management is ridiculously stupid, sell shares at 0.091 and buy back at 0.113. Years ago, i remembered healthway doing something similar.. doctors ah, doctors, this is what graham once said
"In fact, medical men have been notoriously unsuccessful in their secu-
rity dealings. The reason for this is that they usually have an ample
confidence in their own intelligence and a strong desire to make a
good return on their money, without the realization that to do so
successfully requires both considerable attention to the matter and
something of a professional approach to security values.
"

Hmmm...cannot rem clearly but this are my thoughts.
After the rights dilution, the diluted share price after is about 16 cents per share in terms of value.
(after selling a part of the business @ 0.091, the whole of the company is diluted to .016 cents in value)

Stock eventually falls to 0.11 due to rights "selling pressure".
(the effect that people trying to sell the rights @ 1 bid cheaper, causes arbitration of the rights and the mother share, will in a cycle keep pushing the share price down until the rights stop trading due to the bid ask spread.)

Selling a "part" piece @ 0.091 and buying "whole" piece @ 0.113 is not a good comparison imo.

Stock halted today after query and 10% jump earlier this week.

FY 2015 results not out yet, good news?

(15-01-2016, 10:14 AM)BlueKelah Wrote: Stock halted today after query and 10% jump earlier this week.

FY 2015 results not out yet, good news?

From BT:

TRADING in shares for Halcyon Agri has been halted on rumours that rubber processor Halcyon Agri would be acquired by China state-owned firm Sinochem Group.

Sinochem also owns a controlling stake in GMG Global, which is said to be among the assets that will be injected into Halcyon as part of the deal.


Maybe more cash appearing on the balance sheet of GMG after the off-loading of assets?

If i remb correctly, Gmg palm oil assets in Africa . Not even mature yet .

Probably speculation that sinochem will acquire gmg..

Sent from my MotoG3 using Tapatalk

Halcyon attempting to privatise GMG Global , Success or no?

SIAS urges Halcyon to raise offer for GMG, citing unfair valuations

Based on SGX stockfacts, Sinochem owns 55.07% of GMG, Halcyon is sure of 55.07% minimum acceptance.  

In IFA circular dated 23 Sept 2016, under clause 7.2 Compulsory Acquisition, it states:

in the event that the Offeror receives valid acceptances
pursuant to the Offer (or otherwise acquires GMG Shares during the period when the Offer
is open for acceptance) in respect of not less than 90% of the total number of issued
GMG Shares........................    the Offeror would be entitled to exercise the right to compulsorily
acquire all the GMG Shares of the Shareholders who have not accepted the Offer
(the “Dissenting Shareholders”) at a price equal to the Offer Consideration.

It does NOT state that it is the INTENTION of the offeror to exercise this right.  
Question: I intend NOT to accept, but is just a little fearful of being stuck with shares in an unlisted company.  From the "not fair but reasonable" comments of IFA, I think it unlikely Halcyon will get substantially more acceptances than 55.07%, so is my fear unfounded?

Of course clause 7.2 also follow on with:  In addition, Dissenting Shareholders have the right under and subject to Section 215(3) of the Act, to require the Offeror to acquire their GMG Shares at a price equal to the
Offer Consideration in the event that the Offeror, its related corporations or their respective
nominees acquire, pursuant to the Offer such number of GMG Shares which, together with
the GMG Shares held by the Offeror, its related corporations or their respective nominees,
comprise 90% or more of the total number of issued GMG Shares (excluding any GMG
Shares held by GMG as treasury shares). Dissenting Shareholders who wish to exercise
such rights are advised to seek their own independent legal advice.”

Question: Following my intention not to accept, I wonder if in the event acceptances cross 90%, would it be a simple process then to require the offerer to then acquire their GMG Shares?  On the same terms as if it was done before the close of the offer?

VB opinions would be appreciated.  Quite new in this area.